| GEO Business|
| Sharp recovery witnessed at KSE this week|
| Updated at: 1806 PST, Saturday, July 26, 2008|
KARACHI: Share prices took a sharp U-turn this week at Karachi Stock Exchange after 3 weeks of slaughter, as investors rallied on the announcement of a 20-billion-rupee fund following a visit by the finance minister.
The benchmark index jumped about 8 percent to 11,032 points, as investors found hope, following the visit of state bank's governor and also of the finance minister.
As institutions booked new positions at heavily discounted prices, average volumes rose 21 percent to 140 million shares.
Analysts attribute this pullback to the announcement of the 20-billion-rupee market support fund, to be launched by the state-owned investment firm NIT.
Some were also encouraged by announcement made by SBP chief that banks have an aggregate capacity to invest 40 billion rupees in the stock market, if they wish to do so.
This, they say eased liquidity concerns.
But despite these apparently positive developments, foreign investors remained unconvinced – selling about 18 million dollars worth of equities this week.
This is largely attributed to the widely expected interest rate hike by the central bank in the up coming week.
Dealers say weekend sentiments were also depressed due to the likely launch of new saving products by the government soon.